Good News on the Section 179 Depreciation Front
Bonus depreciation also was extended for 2014. Bonus Depreciation is limited to 50% of the cost of the NEW property (cannot be used property). The total expenditure limit, for property, cannot exceed $2,000,000-for section 179 depreciation.
The total amount that you can elect to deduct under Section 179 depreciation cannot exceed $500,000. This generally extends to all property, other than real property. It can be used or new property. The limit for qualified real property(leasehold improvements) deduction is limited to $250,000, and is included as part of the $500,000 maximum under Section 179. Automobiles are limited to a maximum deduction of $25,000.
If you have not yet made 2014 equipment purchases, and are considering doing so, the following must be done by 12/31/14:
- The property MUST be purchased and PLACED INTO SERVICE by 12/31/14.